Oil Pollution Act

OIL POLLUTION ACT

Scotus-Exxon Oil Spill

• The law was signed in 1990 as a response to the incident dealing with Exxon Valdez.
• Exxon Valdez was an oil tanker that struck Bligh Reef in Alaska spilling over 11 million gallons of oil.
• The law attempts to stop and then respond to catastrophic oil spills
• It also requires the oil storage facilities and vessels to present plans including their response to large discharges to the Federal government.
• The development of Area Contingency Plans is required to prepare for response to oil spills on a regional scale.
• This law also created a fund that would provide one billion dollars for every oil spill incident called the Oil Spill Liability Trust Fund
• Along with the Oil Spill Liability Trust Fund, the government created new requirements for the National Oil and Hazardous Substances Pollution Contingency Plan(NCP). Some of these new requirements are:
  • Certain spill events are required to have the Federal government direct the public along with private response efforts.
  • Area Contingency Plans must be developed for Area committees, which contain federal, state, and local government officials.
  • Facility Response Plans must be developed by owners of vessels or certain facilities that cause a serious threat.
• Some of the key provisions made to the Oil Pollution Act are:
  • The party responsible for the oil spill are held responsible for damages and removal costs.
  • If it is proven that the oil spill or emission is caused by a third party then the third party is liable for the damages ad removal costs.
  • The responsibility for the oil spills of more than 3,000 gross tons costs either $1,200 per ton or a million dollars (which ever one is greater).
  • States may provide aid to the responsible party in ways such as funds and removal mechanisms.
  • States may access up to $250,000 from the Federal government to help cover for the fines and other aid.